Autodesk Results Top Estimates; Outlook Disappoints

(RTTNews) - Design software maker Autodesk, Inc. (ADSK) said Thursday after the markets closed that its second quarter profit fell 4.5% from last year, hurt by lower revenue and weaker margins.

However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.

At the same time, the company forecast third quarter revenue and earnings well below analysts' current consensus estimates.

"Our second quarter was marked by strength in our Architecture, Engineering and Construction (AEC) business segment and continued growth in suites," said Carl Bass, Autodesk president and CEO.

Autodesk shares currently losing 3.13% in after hours trading after closing the day's regular trading session at $36.13, up 51 cents or 1.43%. The shares trade in a 52-week range of $27.70 to $41.42.

Second quarter revenue from the Americas increased 2% to $202 million, while revenue from EMEA decreased 4% to $202 million and revenue from Asia Pacific fell 1% to $158 million. Revenue from emerging economies slipped 2% from last year to $86 million and represented 15% of total revenue in the second quarter.

Revenue from the company's Platform Solutions and Emerging Business segment fell 9% from a year earlier, while revenue from its Architecture, Engineering and Construction business segment rose 9% from last year. Revenue from the company's Media and Entertainment business segment fell 11% from a year ago, while revenue from its manufacturing business segment grew 2% from a year last year.

First quarter revenue from the company's flagship products fell 11% year-over-year, while revenue from Suites increased 18%.

For the second quarter ended July 31, 2013, the company reported net income of $61.7 million or $0.27 per share, compared to $64.6 million or $0.28 per share for the year-ago quarter.

Excluding items, adjusted net income for the second quarter fell to $101.8 million or $0.45 per share from $111.1 million or $0.48 per share in the prior year quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to earn $0.42 per share for the second quarter. Analysts' estimates typically exclude special items.

Operating margin for the quarter narrowed to 15% from 16% a year ago, while adjusted operating margin shrank to 24% from 25% last year.

Revenue for the second quarter fell 1% to $561.7 million from $568.7 million in the same quarter last year. Eighteen analysts had a consensus revenue estimate of $560.56 million for the second quarter.

The company's deferred revenue at the end of the second quarter was $806 million, an increase of 7% from a year earlier.

Looking forward to the third quarter, the company forecast revenue of $540 million to $555 million, earnings of $0.19 to $0.23 per share and adjusted earnings of $0.36 to $0.40 per share. Analysts currently expect the company to earn $0.50 per share on revenue of $580.92 million for the third quarter.

"The challenging dynamics within some of the end-markets that we serve has led us to adjust our growth assumptions," said Mark Hawkins, Autodesk executive vice president and CFO. "While the near-term revenue target is lower, we remain diligent about managing our spend while making essential investments to drive growth."